EFCC Recovers Funds in N1.3 Trillion CBEX Crypto Scam, Arrests Made
Power Title: “EFCC Strikes Back: Ola Olukoyede Announces Fund Recovery and Arrests in Massive N1.3 Trillion CBEX Fraud”
Abuja, May 26, 2025 – The Economic and Financial Crimes Commission (EFCC), led by Chairman Ola Olukoyede, has made significant progress in addressing the collapse of the Crypto Bridge Exchange (CBEX), a digital investment platform that defrauded Nigerians of over N1.3 trillion. In a TVC interview on May 25, 2025, Olukoyede confirmed that the EFCC has recovered a “reasonable amount” of the stolen funds and made several arrests, though he withheld specific figures and names to avoid disrupting ongoing investigations. The scam, which promised investors a 100% return on investment within 30 days, collapsed in April 2025, leaving thousands unable to access their funds.
Details of the CBEX Fraud and EFCC’s Response
CBEX, operated by foreign nationals in collaboration with Nigerian partners, launched in July 2024 and attracted over N1.3 trillion in investments before crashing. Users reported withdrawal issues, with account balances vanishing, prompting widespread outrage. The EFCC had profiled CBEX as a potential Ponzi scheme as early as March 11, 2025, when Olukoyede instructed alerts to the public about 58 such platforms, per Leadership. Despite these warnings, many Nigerians continued investing, lured by unrealistic promises.
Olukoyede revealed that the fraudsters used non-custodial crypto wallets without Know Your Customer (KYC) verification, making tracing difficult. Funds were transferred to wallets in Europe and Cambodia before dispersal, but the EFCC, working with Interpol, has blocked some accounts and recovered a portion of the cryptocurrency. “Even though it’s in the crypto wallet, the same way the money was taken, there’s no way you get dollars in cash without going through the same process,” he explained, highlighting the complexity of converting recovered crypto to cash.
The EFCC has made “reasonable arrests” and is pursuing suspects still at large, with Olukoyede emphasizing that the agency’s “dragnet is wide” and its intelligence effective. In April, spokesperson Dele Oyewale assured investors that the EFCC, collaborating with international agencies, would ensure recovery, stating, “It would be irresponsible to say there’s nothing we can do.” However, Olukoyede cautioned that full recovery is “practically impossible” due to the funds’ dispersal across untraceable wallets.
Public Reaction and Ongoing Risks
Despite CBEX’s collapse, reports indicate the platform has resumed operations, allowing re-registration and trading, which some view as a ploy to regain trust. Olukoyede warned that perpetrators remain active, with some Nigerians still falling victim. “People should learn from this,” he urged, citing the Investment and Securities Act 2025, which criminalizes unlicensed digital trading.
X posts reflect public frustration and cautious hope. @BlessedAjoke lamented, “CBEX has crashed. All money gone,” while @Nairametrics and @SaharaReporters highlighted the EFCC’s recovery efforts, though without specific figures. @iNaijaNow noted that “many scammers are still on the run,” reflecting skepticism about full justice.
Critical Reflection
The establishment narrative, per Tribune Online and Daily Trust, frames the EFCC’s actions as a proactive triumph, emphasizing recoveries and arrests. However, the lack of disclosed figures and the admission that full recovery is unlikely raise questions about the agency’s effectiveness against sophisticated crypto scams. The use of non-custodial wallets exposes gaps in Nigeria’s regulatory framework, and the EFCC’s early warnings, while proactive, failed to prevent widespread losses. Olukoyede’s broader efforts, like addressing $88.6 billion in annual illicit financial flows in Africa, suggest a focus on systemic issues, but public trust hinges on tangible results in high-profile cases like CBEX.
Conclusion
The EFCC, under Ola Olukoyede, has recovered a portion of the N1.3 trillion lost to the CBEX crypto scam and made arrests, but challenges like non-custodial wallets and international fund dispersal complicate full recovery. While the agency’s collaboration with Interpol signals progress, Olukoyede’s warning about ongoing fraud underscores the need for public vigilance. The case highlights both the EFCC’s resolve and the limits of tackling global crypto schemes. For more, see Tribune Online or The Whistler’s May 26, 2025, coverage.
If you’d like specifics on crypto fraud mechanics, the EFCC’s recovery process, or a chart of Nigeria’s crypto scam losses, let me know!
